Monthly Archives: February 2017

Indonesia produces 64 million tons of waste annually. Jakarta itself produces 6,600 to 6,700 tons of garbage per day. The capital city needs at least three waste-to-energy plants – as per 2012- 2023 master plan for garbage management. Currently, Jakarta has only Bantar Gebang waste treatment facility in Bekasi, West Java to treat its waste. Jakarta city administration spends Rp 133,000 (US$9.77) for every ton of waste that is processed at Bantar Gebang.

Jakarta is expected to construct intermediate treatment facilities (ITF) to process waste into energy in four areas of the capital.

The plants will be located in – Sunter with a capacity to process 1,000 tons of waste per day, Cakung Cilincing (with 1,500 tons per day capacity) and Marunda (capacity for 2,500 tons per day) and another in Duri Kosmabi, West Jakarta.

The facilities are expected to use incinerating machines to produce thermal energy.

PT Jakarta Propertindo will develop the ITF in Cakung Cilincing and Marunda while ITF in Sunter and Duri Kosambi is said to be developed by the Jakarta Sanitation Agency.

Although tenders for the projects were offered in 2012 and foreign companies were selected, no winners are announced yet – due to the change in political leadership.

Indonesia’s second-largest coal miner by volume, Adaro Energy is planning to diversify its business by exploring the renewable energy domain.

The company via its subsidiary Adaro Power is aiming to slowly make an entry into the green energy domain. As a start, it plans to add 50 megawatts of renewable power. However, the company is still exploring different types of clean energy sources such as solar-cell, geothermal, biomass and micro hydro power for its project.

Adaro is aiming to invest approximately US$75 million to $100 million for the initial project. It plans to secure 70 percent of the funds from loans and the remainder from internal sources. Adaro has enough equity, but the challenge for the company is to acquire a loan.

Meanwhile the Japan Bank for International Cooperation (JBIC) has provided a loan for Batang power plant project in which Adaro owns 34 percent shares. It will be the biggest coal-fired steam power plant in Southeast Asia.

Adaro is hopeful to secure more finance from Japanese banks as well as JBIC for power projects in Indonesia.

More about clean energy projects in Indonesia will be discussed at CMT’s Indonesia Renewable Power on 27 Feb – 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.

Indonesia’s power sector that is dominated by state power company Perusahaan Listrik Negara (PLN), will open-up soon. In a ministerial decree, Energy and Mineral Resources Ministry has approved to allow independent power producers (IPP) to sell their power directly to customers, particularly in remote areas or regions that are not serviced by PLN. The move is likely to end the monopoly of PLN in the power sector.

The decree now awaits ratification from the Ministry of Justice and Human Rights.

IPPs will be allowed to build their own plants, distribute power and also take care of their own costs.

The move will be a boost to renewable power as the smaller IPPs that produce renewable and fossil fuel power, can operate in 2,500 villages across the country which have not been connected to PLN’s power grid.

Prior to this regulation, IPPs were allowed to sell its power to PLN only. The process was marred with lengthy negotiations that often made these small-scale projects unfeasible.

PLN is expected to concentrate on more large-scale projects to support the government’s target of adding 35,000 MW to the country’s power grid by 2019.

One possible challenge for the small scale IPPs is that the electricity produced might be expensive and households might not be able to afford it.

Estimates show that as much as $8 billion might be needed to provide electrification in remote areas. This figure is much higher than PLN’s average base cost of Rp 1,352 (1 US cent) per kilowatt hour. The government might have to step in to subsidize the private sector to address this problem.

More on Indonesia’s power sector developments will be discussed at CMT’s Indonesia Renewable Power on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.